News Americas, New York, NY, March 19, 2025: The Caribbean Development Bank (CDB) has projected 2.5% economic growth for its 19 borrowing member countries in 2025, following 1.7% growth in 2024, excluding Guyana, which saw a remarkable 43.5% expansion last year.
At the CDB’s annual news conference, Director of Economics Ian Durant stated that Guyana’s economy is expected to slow to 11.9% growth in 2025, following its surge in oil production. However, the country will remain a key driver of regional economic expansion. With Guyana included, the overall growth forecast for the region rises to 4.6%.
Economic Drivers and Risks
Growth will vary across CDB member states, with commodity-exporting nations expected to gain momentum, and service-based economies, particularly in tourism, forecasted to grow by 2.2%. Construction, driven by public and private investments, will also contribute to economic expansion.
However, Durant warned that several global and regional risks could impact economic performance. Geopolitical tensions, protectionist trade policies, and potential slowdowns in key markets like the United States could affect demand for Caribbean exports. Climate change and natural disasters remain significant concerns, especially as hurricanes and extreme weather events intensify.
Fiscal Outlook and Policy Challenges
Most Caribbean governments are expected to maintain primary budget surpluses, strengthening debt positions. However, with many Caribbean countries facing elections in 2025 and 2026, there is a risk of fiscal pressures and policy shifts that could slow economic reforms.
Despite these challenges, the Caribbean is recovering from recent economic shocks, including COVID-19, supply chain disruptions, and high inflation. The CDB remains optimistic that continued investment and resilience-building efforts will sustain positive economic growth across the region.
